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TEXAS HOMESTEAD and PROBATE LAW Jonathan D. Baughman

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TEXAS HOMESTEAD and PROBATE LAW Jonathan D. Baughman TEXAS HOMESTEAD AND PROBATE LAW Jonathan D. Baughman McGinnis Lochridge 711 Louisiana, Suite 1600 Houston, Texas 77002 [email protected] (713) 615-8540 INSTITUTE FOR ENERGY LAW 2nd Texas Mineral Title Course May 14-15, 2015 Houston, Texas JONATHAN D. BAUGHMAN Jonathan D. Baughman is a partner in the Houston office of McGinnis Lochridge. He is licensed to practice law in Texas and Louisiana and received his B.S. degree from Louisiana Tech University, magna cum laude, and his J.D., magna cum laude, from Loyola Law School where he was the managing editor of the Loyola Law Review. Prior to practicing law, Mr. Baughman worked as a certified public accountant in the energy section for a major international public accounting firm and later as an internal auditor for a major natural gas pipeline company. Mr. Baughman chairs his firm’s oil and gas practice group and represents clients in a wide variety of oil and gas litigation in federal and state courts. Mr. Baughman is AV (highest) rated by Martindale Hubbell and has been recognized as a Super Lawyer by Texas Monthly. Mr. Baughman has litigated disputes involving joint operating agreements, gas processing agreements, leases and other agreements. He has litigated many oil and gas issues related to title, lease covenants, implied and express covenants to pool, royalty payments, COPAS, natural gas trading, reservoir damage, well blowouts, and misappropriation of seismic data. Mr. Baughman has written articles and spoken on numerous oil and gas issues before the American Association of Professional Landmen, the Rocky Mountain Mineral Law Foundation, the Institute for Energy Law, and the Louisiana Mineral Law Institute as well as other organizations. Mr. Baughman previously served as the Chair of the Oil & Gas Section of the Houston Bar Association. He is also a member of the Rocky Mountain Mineral Law Foundation and was appointed as one of 25 distinguished Advisory Board Members for the Louisiana Mineral Law Institute. TABLE OF CONTENTS TEXAS HOMESTEAD LAW .........................................................................................................1 I. Introduction ......................................................................................................................1 II. The Homestead Exemption ..................................................................................................1 A. The Texas Constitution ............................................................................................2 B. Rural Homestead ......................................................................................................2 C. Urban Homestead.....................................................................................................3 III. Claims Enforceable Against the Homestead........................................................................4 IV. The Possessor of the Homestead..........................................................................................4 A. The “Family Homestead” ........................................................................................4 1. Definition of “Family” .................................................................................4 2. Social Status of Family ................................................................................5 3. Duty to Support ............................................................................................5 4. State of Dependence ....................................................................................5 5. “Family” Status Affected by Death/Divorce/Marriage ................................6 B. The “Single Adult” Homestead ...............................................................................6 C. Surviving Spouse .....................................................................................................7 D. Surviving Minor Children ........................................................................................7 E. Unmarried Adult Children Remaining With the Family .........................................8 V. Homestead Rights in the Oil & Gas Context .......................................................................8 A. Mineral Property ......................................................................................................8 B. Open Mine Doctrine ................................................................................................8 VI. Constitutional and Historical Basis for Mineral Rights Being Included in Homestead ..............................................................................................8 VII. Homestead Rights In The Separate Property Owned By The Other Spouse .....................13 i VIII. Special Issues Involving Prior Attempted Conveyance of the Homestead........................14 IX. Termination of the Homestead by Abandonment ..............................................................16 X. Homestead Reservations ....................................................................................................17 TEXAS PROBATE LAW .............................................................................................................18 I. Introduction ........................................................................................................................18 II. Intestate ..............................................................................................................................18 A. Community Property ..............................................................................................18 B. Separate Property ...................................................................................................19 C. Community Property – Married Decedent .............................................................19 (1) Death Prior to September 1, 1993 ..............................................................19 (2) Death On or After September 1, 1993 .......................................................19 D. Separate Property – ...............................................................................................19 (1) Decedent Married with Children ...............................................................19 (2) Decedent Single or Widowed with No Children .......................................20 (3) Decedent Single or Widowed with Children .............................................20 (4) Decedent Married with No Children ..........................................................20 (i) Real Property .................................................................................20 (ii) Personal Property ...........................................................................20 E. Adopted Children ...................................................................................................21 F. Half-Blood Take Half as Much as Whole Bloods .................................................21 G. Anti-Lapse Statute .................................................................................................21 III. Wills ...................................................................................................................................22 A. Holographic Wills ..................................................................................................22 B. Attested Wills.........................................................................................................23 C. Self-Proving Affidavit ...........................................................................................23 ii D. Codicil ....................................................................................................................23 E. Revocation of a Will ..............................................................................................24 F. No Revival Rule .....................................................................................................24 G. Basic Will Provisions .............................................................................................24 1. Exordium Clause ........................................................................................24 2. Identification ..............................................................................................24 3. Specific Bequests .......................................................................................25 4. Residuary Clause .......................................................................................26 5. Survival Period...........................................................................................26 6. Fiduciary Appointments.............................................................................26 7. Fiduciary Powers and Duties .....................................................................27 8. Disclaimers ................................................................................................27 IV. Trusts..................................................................................................................................27 A. Living Trusts (i.e. Intervivos Trusts) .....................................................................29 B. Testamentary Trusts ...............................................................................................31 C. Some Relevant Provisions in Trusts and Wills that Contain Testamentary Trusts ...............................................................................................31 1. Spendthrift Protection ................................................................................31
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